it himself. >> a red line should be drawn right here. before, before iran completes skd stage of nuclear enrichment necessary to make a bomb. sglin credibly effective. tonight we asked first, will obama respond to netanyahu's red line? he wouldn't especially meet with him. second, has president obama outsourced his foreign policy to hillary clinton? and what about the incredible cover up of the libyan terrorist attack. this could be benghazi gate on the eve of the election. also this evening, mitt romney should draw a red line for middle income taxpayers and say you will not lose your deductions and you will get yours lower tax rates. he has to have a chris cal clear growth message in next week's debate. it could be his last chance. plus the nfl made a deal overnight and the real refs will

be on the field this evening. this is a huge story where there were billions of dollars at stake. we have an exclusive new england patriots owner robert kraft joins me this evening. he is the first owner to speak out. all right. following monday's outburst by mahmoud ahmadinejad, it was israeli benjamin netanyahu's turn today. danielle lee joins us with the details. >> good evening. today prime minister netanyahu used a cartoon-like graphic to drive home his fear that iran could have a nuclear bomb completed by this coming summer. he said the time for peaceful negotiations is running out. from a fight over the west bank to fears about iran's nuclear program, netanyahu spoke under pressure before the united nations. >> today a great battle is being waged. >> reporter: just one day after mahmoud ahmadinejad accused

israel and the west of intimidation, net i can't you hugh delivered a new ultimatum. >> a red line should be drawn right here. before, before iran completes the second stage of nuclear enrichment necessary to make a bomb. >> reporter: israel and the west suspect iran is trying to build a nuclear weapon. and fear the impact on the region. but so far diplomatic efrforts o stop iran have been unsuccessful. and the white house can it respond to netanyahu's comments, they said they that they are committed to stopping iran from developing a nuclear weapon. in the past, president obama has said that he would use force as an absolute last resort. what the white house didn't say today was when or if they would give that ultimatum that netanyahu is requesting. larry, back to you. >> danielle, is bom still scheduled to have a phone call with netanyahu on friday? or is that subject to change and

they're meeting instead? >> reporter: so par what we're hearing is that he's planning to have that phone call meeting by phone with netanyahu on friday as you have mentioned. did get some negative words because he didn't meet with netanyahu in person as the prime minister had requested while he was in new york. >> thanks very much, danielle lee. appreciate it. so netanyahu draw as red line on iran. but will president obama lead america to follow suit? my next guest harvard law professor says the president should forget about a red line and instead send iran a message in black and white. so let's talk about that. we have general wesley clark, former nato supreme allied commander europe and former presidential candidate, and also with us the aforementioned alan dershowitz. welcome back to the show. i loved your op-ed piece. i want to start with that. you're not really in favor of

the red line. and in fact the u.n. has had a red line on iran in the past and it doesn't mean anything. you want president obama to decisively talk about the military option. do i have that right? >> absolutely. what i want is a black and white clear statement from the president to the people and the leaders of iran why are you undergoing sanctions. we're not going to let you develop a nuclear bomb. we're not going to tell you when, but we're telling you under no circumstances are we going to allow you to have a nuclear bomb. and if it comes to it, we will use the military option. now, the president's come close to saying that. he has said we'll do what we have to do. no option is off the table. we're using prevention, not containment, but i wish he would speak a little bit more clearly and stop some of his subordinates. after all, vice president biden condemned mitt rochl any for are you saying we should be readied to go to war?

yes, we should be ready to go to war with iran and if we're ready to go to war with iran and iran knows it, we won't have to go to war with iran. >> and general clark, welcome back. he also writes that president obama has called the concerns over iran noise, quote/unquote, and that secretary of defense leon panetta has repeatedly and emphatically outlined the dangers of military action against iran. and joe biden as he said has made fun of the whole thing. it doesn't sound like an open and shut commitment that the u.s. would use military option, general clark. what's your take? >> i think it's an open and shut commitment. i think the president said he'll do whatever it takes. i think he can do it. we know what the military option is. it's been talked about many times. you've seen it on display in iraq and afghanistan. we used a military option in kosovo when i was the commander, the iranians should be under no doubt that this option can be used. it will be effective and it will result in the destructure of the

industrial potential and military potential of iran. the question is what's the best way to maneuver the iranians so you don't have to do that. because no one wants to use at least on this side in this government wants to use military force if you don't have to. always innocent people get killed there, are always economic repercussions. it's difficult to come out of it. so we'd rather the iranian government and iranian people use common sense and stop the development. and that's the process that's going on now. >> i think that's a great statement. >> that's quhwhat the administration's been saying. >> the people of iz rae don'sra want a military option either. the only way they'll back down is only if they it know for absolute certainty that this president will pull the trig fer it becomes necessary. now this, president looked me in the eye one day sitting in the oval office and he said to me,

alan, i don't bluff. and i believe him. so general clark, you and i are on the same page. >> we absolutely are on the same page. and if the iranians need any proof, they should look at what happened to osama bin laden. we've talked a lot about osama bin laden during this election season. because rightly the president gets a lot of credit for having made that decision. of course he want the man in the helicopter. but he was the man who would have taken responsibility had it failed. and he did not give osama bin laden a warning. the iranians should not expect a countdown on this ultimatum. >> fair enough. >> they have been warned. >> can we get the iranians to believe this? right now they don't believe it. >> they may never believe it. >> and why not, can i add one thing, this idea of mutually assured destruction, which netanyahu raised in his i thought terrific speech today, having a nuclear weapon is not a

deterrent, it's an inducement. he said not only are the economic sanctions not stopping the nuclear development, but in fact the nuclear weapon is an inducement because the iranians unlike the soviets, the iranians are worried about the next life. that's the jihadist religion as i understand it. and therefore we must never allow them to have this nuclear weapon. >> we all agree that they shouldn't have it. but here's the point. that you've got to set up the military option by bringing allies on board, you've got to have what happens next worked out. when you're -- the other side never wants to believe in a we'll do it. so that's not the right criterion. the right criterion is when is the last time to do it when you have maximum international support, when you've figured out what happens next, when your military is in position and you're ready to go and there is no alternative. when we about hbombed in belgray

were surprised. >> i don't mean to interrupt, but i just got to ask you -- >> you have to let me finish the argument. they will not believe you're coming militarily. so a lot of what we're doing to be very honest with you is worry taking advantage of ahmadinejad erectless language, his determination to attack another sovereign state. we're mustering al lieses. we're bringing the american people on board. and when the hammer falls, if it has to fall, it will fall i'm confident. with this president it will decisively. >> jnetanyahu draws a red line. >> it was a brilliant speech. >> totally agree. but here's what i don't get. general clark says we've got on build this coalition and get ready for this and make everyone believe it. how do we do that if president obama does not sit down and meet with netanyahu after this

dramatic speech? netanyahu lies out his position, he says mutually assured destruction doesn't work, he says economic sanctions are not working. how do you achieve the coalition that general clark is talking about if the two of those guys aren't sitting down? >> i think they're meeting through surrogates and netanyahu did say that there is coordination between the militaries. i'm hoping that it will be so clear and unambiguous that the iranians will finally get it and back down, but we have to be prepared for the alternative that they don't and we have to be prepared to pull the trirg because the only thing worse than attacking iran is let them have the bomb. >> we'll left it there. thank you very much, gentlemen. i appreciate it. coming up on kudlow, the market was up today despite some stalled economic signs that the u.s. still could be on the edge of a recession. i'll show you those signs.

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pretty ugly day on the economic front. gdp data for example revised to only 1.3% for the second quarter. that is a recession-like stall speed. and durable goods vinchrtually collapsed. jobless claims did fall 26,000 for the week. nonfarm payrolls were actually up an extra 386,000 jobs. okay. my take on the whole story on the heels of yesterday's gloomy ceo survey, it could well be that businesses are on capital strike right now. they're paralyzed by europe, china, dysfunctional washington, d.c. and that's why you're not seeing factory production and durable goods production or capital investment in general. so let's talk about this situation. joining me now, dan greenhouse,

chief global strategist, michael ozainian, co-host of sports money on the s channel. >> that's correct. >> you have to explain to me what really a collapse of durable goods, very important investment in manufacturing indicator, and the downturn, downdraft of gdp, stocks went up anyway. up 100 points for a lot of the day, finished up 72. >> stocks are going up because central banks are printing money. the animal spirits of capitalism in this country are on strike. gross fixed capital investment was unchanged in the quarter. a year ago, it was un5%. corporate profits don't even look good to me. looking at about 2% annual growth. good and revised up slightly.

>> this is supposed to be a recovery. we're supposed to be seeing 5%, 6% growth. instead the trend is down. they're saying 1% earnings in 2013? no way. the big thing we've had to help publicly traded companies is 30 2013? no way. the big thing we've had to help publicly traded companies is 30% in output sales per employee. they're up 30% since 2009. that is not going to continue. >> how did you know that? that's a great stat. >> i checked. i have to come on here at least with one piece of information. >> phenomenal stat. dan, let me go to you. two other factories playing on the market today. the spanish budget was published and it came in, quote, tougher, ie lower, year over year. in fact i think it's down 8% or 9%. doesn't mean they'll do anything, just means they published a budget. but a lot of smart guys on wall street are saying because the spanish budget looked good, the market rallied. is there an iota of truth to

that? >> no, that's true. and i would disagree with the point that somehow today we were up because central banks were printing money. certainly in the larger scheme of things that may be true, but today when the headlines hit and on some screens there was a big headline that said the austerity imposed was tougher than was required and people thought that was good and we rallied off the rest of the day. there's arvousness. clearly europe is the driving factor. and when headlines hit that are perceived to be good -- >> we have seen good and bad new comes in and out of europe. the one constant we've had since stocks have made their run is this money printing. that's been the one constant. no one really knows exactly what's going to happen in europe, but we do know the fed will -- they'll print money -- >> that's not fair. and i totally disagree. when i sit here and i look at my screens, over the last 12 months, you can pretty much

define the up trends and down trends based off what's going on in europe. >> if europe was recovering, why is the central bank continuing to pump money -- >> i'm not saying -- >> why is china going to join in and print table? >> nobody said they were recovering. my only point is when a headline comes out perceived to be positive, the market goes up. >> can i harp on china for one second? i think to some extent the degree to which they are pumping new cash into the economy which was information that came out last night contributed to a good day in the shanghai stock market, up 2%, it's done horribly for many, many, many months, is that chinese cash injection a big surprise in the same sense that the fed's cash injection was always big surprise? >> i think them coming out and saying that -- affirm something that some people thought, just like people thought there was going to be qe-3 but it wasn't until they affirmed it and we saw stocks take off again. we saw qe 1, qe-2, qe-qe-3.

look at our poverty rate, our unemployment rate. that's not a recovery. >> housing prices are getting better. >> that's a bubble. incomes aren't going up. >> housing is in a hugh bubble? >> look at what happened to mortgage rates. >> this is literally unfounded. you're combining these really big stories about poverty which is all legitimate debate to have with a shorter term story with respect to what's happening in the market and i would add after qe 1, after qe-2 and now qe-3, the initial reaction was stocks turned lower. i would remind you qe 1 was launched in november 2008. >> i'm saying stocks are not going up because of economic reasons. the growth rate is plummeting and real corporate -- >> corporates are supposed to slow down at this point in the cycle. growth rates are supposed to slow down.

i agree it's not -- i agree this is not as strong of a recovery as we should have hoped for, but however, there were many of us that were on the cnbc in 2010 and 2011 saying don't expect -- possibly the next federal reserve chairman said don't expect a v shaped recovery. >> professor at harvard and romney adviser. >> republican up and down the line. >> filling in the blanks. he's a friend of mine. >> at the time when the administration was touting its stimulus package, we were going to have a v-shaped recovery. >> are you surprised -- i know you're a bear. i get this. but a day like today with 1.3% gdp, absolute collapse in factory goods and orders, the market goes up, but when you look inside the market, it's the growth cyclicals. tech, energy, material, financials, consumer discretion. >> transports are getting killed. utilities are getting killed. >> the group that would be predicting a per future economy was predicting it today, up about 1% to

does that surprise you? >> i don't buy it at all. >> so you think we're in a recession. >> we're heading to it. at this moment, we're sticking with cyclicals. >> gold and gold miners. >> you heard it, folks. very lively. great stuff. coming up, nasa's curiosity rover captures images of a stream bed on mars. the full story on that plus late breaking news headlines up next. now, that's what i call a test drive.

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nasa's curiosity rover makes a big discovery, an ancient rock on mars. jackie deangelis joins us with more on that and all the latest breaking headlines. >> well, a fast moving stream on mars. yes, say nasa scientists. when curiosity bounced down on the red planet and deployed its cameras, it found evidence that a stream once ran across the area where the rover is moving. the rock images are the first evidence of ancient streamed gravel. scientists estimate that the water was between ankle and hip deep. meantime california governor jerry brown signed a law barring employees and universities from asking applicantses for their social media screen names and i.d.s. meantime google by the way celebrated a birthday 14 years today since the search engine went active and became a verb

and so much more. google's market cap at the close today, $198 billion and change. and j. k. rowling's earlier readers are now adult, just in time for her first adult novel published today. fans lined up to buy the book in london minus the wizard costumes. and new york city's economic development arm is in negotiations to build the world's biggest ferris wheel on staten island. mayor bloomberg says it will be built with private money. construction won't begin for a year. you'll ride in a pod with up to 40 people and the ride take as ha take as half an hour. >> i want to go back to the r 8 rowling back. i hear it's sexually risque. >> anything like 50 shades of grey? >> i heard it from joe kernen

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. welcome back to the kudlow report. i'm larry kudlow. in this half hour, did the nfl cave into the referees union? caving into the fans is okay, but carefving into the unions i not. robert craft is the first owner to speak out. plus president obama goes on "the view," four fund raising trips, and the world is a flash point away from nuclear war. meanwhile hillary clinton has back to back meetings with virtually every world leader possible. we'll ask if this isn't the time for presidential involvement, what is. first up, though, almost every single national poll has mitt romney trailing president obama. the real clear politics national average show as four point lag. is romney letting this election slip right through his fingers?

and importantly, why did he dial back his tax cut yesterday? if i don't know what romney's tax plan is, then i don't know how he's going to reach the middle class. in response to mirant last night and my it is pleasure with what mr. romney said, a key very senior mitt romney person calmed me today and says that mitt misspoke on dialing back tax cuts. and this senior person said mitt would like a mulligan and you know what, following beings, i'll give him a mulligan for now. but he has got to stay on message. and that importantly includes next wednesday's crucial debate. it could be his last chance. let's bring in our guest to comment on this. we have harry melver, steve moore oig and phil reducer.

steve, i went off the rails and went off hfr-i was so angry at this wall street news story story. romney tempers tax plan, dialing back his tax code, suggesting that he's going to remove tax deductions from the middle class. he didn't talk a bit about take home pay and lower tax rates. and frankly, i was angry and confused and if i don't get it, i suspect the public may not get it. >> yeah, i watched the show last night, i saw that anger. and i share that anger. you know, look, there's an order rule of politics, either you're on offense or defense. and too much of this campaign over the last month mitt romney has been on defense. he talked about his tax cut plan defensively. he was pulling back on it saying you're not going to get a big tax cut here because every dollar we give in you rate reduction we'll take away a deduction from you. that's not the way it to sell a tax cut. it's putting more money in people's pockets and be inning incentives.

i want to see mitt romney that is much more bold and much more confident in his program. i wonder whether mitt romney even believes in the tax cut or whether it was just forced upon him. >> that is a key question. i'll go to phil mus musser on that. steve moore oig writes that the new income numbers come out and we've lost about $4500 during obama's presidency. in the month of august, we lost another 500 bucks. the reason i cite that is if you have more take home pay from lower middle class tax rates which is in romney's plan if he believes in it, that gets people through the income problem. that's why this thing should work. now, how is it that mitt romney can't get that message down? how is it that he can't explain that to people? he's a very brilliant guy. what's the problem here? >> well, it is a good plan and you know he's got the good mechanics behind his plan and he's had a tough month with respect to being stuck on

talking about process questions a lot. and frankly, i think republicans are ready like steve said for a choice election. i think the country is ready for a choice election. and would he have moving would moving to the next phase where romney has to articulate the choice if our country.next phas romney has to articulate the choice if our country. i think he's prepared to do that. you look at the advertising strategy they adopted just yesterday. it's mitt talking more specifically and more directly to middle class voters about how his plan whether create jobs. that's a preview of coming ahead.create jobs. that's a preview of coming ahead. >> let me interject one thing. i've seen those ads. i think they look like boiler plate blah, blah, blah, i don't think they convince anything. i want to see some more boldness out of romney. i want to see him really take to obama and i don't think that's what's happening right now. >> larry, i'd like to see you willy the two minute ad that obama took out responding to

mitt. i'd like to see the romney campaign do the same thing and have mitt get out the chalkboard. >> larry, let me jump in here and tell you two things. number one, it's a little late in the campaign for stay tuned. i think that's a problem for any candidate who is saying that as we head into october. the other point in the problem isn't in tracking numbers. the romney campaign is right to point out that horse race numbers move. did you know that last month mitt romney was leading barack obama on who do trust on jobs by 14 points? and right now, he's trailing by six points on the jobs question. >> why is that? >> i'll tell you why. i think the reason is not anything that's happened in the job market, but, rather, and there's a silver lining here for the romney folk, but rather that their campaign has been totally weak over the last three, four weeks and it has really reduced the notion of mitt romney as a credible challenger.

you're not going to win right how when you're down six on jobs. >> he's not talking about his program. i agree with everything you said, but he can turn this around by convincing people next week in denver that he believes in this program, it's a jobs program, because every poll is showing americans think the economy is lousy. they just don't believe that mitt romney has a plan to turn things around. >> and they don't believe mitt romney. >> and he's changing the plan. these guys are calling me, and they're all saying give romney a mulligan because he misspoke. okay. maybe. but when you look back as you said i think or somebody said in the last three or four weeks, he's needed a lot of mulligans on a lot of different topics. and if you're always taking mulligans, i used to play a lot of golf. i really don't anymore. but the guy who takes mulligans at every hole, the foursome doesn't want him to play anymore. and phil, i think mitt romney's having that problem. what is so hard about saying to

middle class voters i'm going to lower your tax rates and give you more take home pay? and for upper income people, i'm going to take your deductions away. what is so hard about that? he should red line the middle class and talk about take home pay. >> i think that's good advice. i think on the twin front of litigating the case against the president about his failed economic policies that's one clear component, but the debate represents the opportunity to speak clearly and in plain english terms about the impact of his pro-growth tax cut policies on people's pocketboo s s. the republican party and frankly a lot of us seem to be stuck in negative feedback loop on mitt.y a lot of us seem to be stuck in negative feedback loop on mitt. it's fundamentally unfair. this race is very close and remains very close. all the overblown rhetoric you hear -- >> i got to go to a separate but

related topic, okay? out in virginia, which is a very patriotic state because of all the military bases, here is obama touting something called economic patriotism. i just love this. what is economic patriotism? you know what it is, it's raise taxes on successful earners and small business owners in order to spend more on state and local government employees. that's economic patriotism? jack up tax rates on the successful in order to spend more on the unions? what's so patriotic about that? >> i love it when republicans want to wrap themselves in the flag, but defund everything that we do as a nation together. yes, you have to spend money on government. look at the union crisis in the nfl. it's like it's a problem if it hits something that people care about. well, union refs tend to be better than nonunion refs for a lot of reasons that we don't have the time to get into, and, yes, supporting our men and women in un for him, our firefighter, our police officers and our teachers, i would call

that patriotism. >> actually i like that term economic patriotism. it's a term mitt romney should be using. for example, i have always said on this show i don't think it is patriotic to support a 35% corporate income tax. >> there you go. >> that is making america uncompetitive and shipping jobs overseas. so let's get together on the economic patriotism and get that corporate tax rate and personal income tax rate stopped. >> why is it patriotic, phil, i'll give you the last word, why is it patriotic to give state and local government unions who are already bankrupting a half a dozen states around the country, why is it that pat yoriotic all a sudden? >> it sounds like a formula for disaster. >> why is it patriotic to hose p taxpayers? >> it's not. they should cut it. >> i got to get out of here. thank you, gentlemen. forget the fan outrage.

did the nfl cave into the referee union? i'm going to ask new england patriots owner robert kraft whether he caved this. he joins me live in studio. he's an old friend. he'll give us the inside scoop on kudlow. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... [ all ] i'm with scottrade.

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so long nfl replacement referees. the regular officials will be back on the field tonight. now, for the first time, we have an nfl owner who is speaking out. here now exclusively, we have robert kraft, the new england patriots owner and an old and dear friend. bob, thank you for doing this. let me start with this. we had fran tarkenton on and he said he hopes that the nfl owners don't give up their business principles and that we could retrain the referee if we had to. i want to ask you, did the nfl give up much to get this agreement with the refs union? >> well, you know, we're fortunate to have a commissioner in roger goodell who thinks long just like the majority of owners. and we want to be sure our product is the best sports entertainment product in the world. and it requires us to have high quality referees.

when you do a long term agreement, it's very important that you face the hard issues. we could have done an agreement quickly, but roger really did a great job here and what he did -- people think it's about money. and the money part of this was really the small -- >> i thought a lot of it was about pensions, 401(k)s versus long term guaranteed benefits. >> that was important, but the most important thing was that we get full-time employees. we now have the opportunity to hire refs full-time, we have people focused 100% on the nfl. and then all the principles of discipline and making sure that we have the highest performance, those refs -- >> how much did you give up? >> those refs who do the best job will be the refs who will be in the playoffs. >> the full-time. so in your judgment, paying them over the next bunch of years a couple hundred thousand dollars if they are he's permanent

refs -- are you saying full-time that's their only job? >> we now have the ability to have full-time refs and develop a deep bench that will only be nfl refs. we will continue to have the other refs, as well, and this will be a phase-in. >> what did the referees union give up? >> what did they give up? i think that they -- look, i think this is a win/win. they did a tremendous financial deal. they have long term security. they have an eight year deal. we've done the same thing. we now know that we have the highest quality refs doing our games just like doing a long term deal with the players, with the tv contracts, now we have a long term deal with the refs. so that our fans know that this product is not going to be compromised in any way. >> nfl will fund their 401(k)s confined contribution. >> the whole world is -- anyone

who wants to survive long term. >> i agree. but you'll fund it. the number is close to $20,000 a year. 18 grand. was that a concession on your part? did that bring the refs over the line and back into the game? >> i don't want to get into the details of it. the most important -- >> we're dying to know the details. >> the most important thing, the hardest part of this deal at least speaking for i think for the commissioner and other owners is is that we have full-time refs and we have stability. and great credit to roger goodell. when you do a deal long term, you have to face hard issues. >> was it unanimous among the owners or are we going to hear owners coming out saying they thought it was lousy deal? >> i think the owners are unanimously behind roger goodell, yes. we're very proud of the job he's done. this was hard. he had to take a lot of heat. with the players, they work for the teams. so owners were more actively involved in the labor

negotiations. the refs work for the league office. and he was on the line there taking the hits. and he did what was good for the game long term. and this is a big win for i believe the fans, the refs, owner, everybody associated with the -- >> we're running out of time. i'd love to talk to you another half hour, but you are being nominated to the hall of fame. >> that was a great honor. >> and you're still the own are and being nominated. most of the time they don't let people active going in. what did you domost of the time people active going in. what did you and being nominate. most of the time they don't let people active going in. what did you do for that? fr frsz. >> i'm nominated, i don't know that i'll go in. i want you to help get the economy going. we need to get jobs and deliver affordable health care in an efficient manner. >> as a devout -- i'm a nut cake giants fan. but you have run an amazing franchise down there. >> thank you. >> you have truly run an amazing franchise. i hope the giants beat the patriots twice or three times

this year, but you've been a fabulous owner. >> they've been pretty good at beating us. they're a great franchise. and before the patriots were created in 1960, i was a giant fan. that's who i used to watch. >> great stuff. thank you. robert kraft, thank you, sir. you're wonderful to come out here. i appreciate it. very old and dear friend. coming up, we'll play where's obama. no, not where's waldo, where's obama. every world leader is meeting at the u.n. this week and our president has not met with a single one of them. it's an outrage. i think mitt romney is a fool if he doesn't jump on this issue. that's next up on the "kudlow report." tdd#: 1-800-345-2550 let's talk about low-cost investing. tdd#: 1-800-345-2550 at schwab, we're committed to offering you tdd#: 1-800-345-2550 low-cost investment options-- tdd#: 1-800-345-2550 like our exchange traded funds, or etfs tdd#: 1-800-345-2550 which now have the lowest tdd#: 1-800-345-2550 operating expenses

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in a week when foreign policy has taken center stage, one would think the president would have his dance card full with heads of state and dignitaries. but when take you a closer look, is it appears secretary of state hillary clinton has been doing heavy lifting. she has her own problems with the cover up in the benghazi story. so in a crucial week with the middle east inching toward possible war, president obama outsources his foreign policy to hillary. i don't get it. let's talk to two distinguished experts. mark ginsburg and ed klein.

ambassador, i want to go to you first. you've got a possible middle east blow up, i don't think i'm exannualage rating. you've got netanyahu's challenge today putting a red line under iran's nukes. and you have really the return of al qaeda. all of a sudden al qaeda. we now know it was heavily involved in the benghazi issue. how is it possible with these kinds of tensions that president obama doesn't get involved hands on roll up his sleeves and meet with these people? >> let me tell you how the process works. i've been in the process for 20 years. there are foreign leaders who are signaling they're coming to the united states to the u.n. general assembly and they express the desire through their ambassadors to the state department they want to meet with the president. and those options are then put before the national security adviser, and he decides whether or not to make any recommendation to the president

on who to meet. well, it's quite clear that either he didn't make any -- either he made recommendations that there's no reason to meet with anybody, or he did make recommendations and the president said, in a, i don i d want to meet them, i'll give a speech and then get to ohio. >> just to follow up on this, i'm thinking of the netanyahu story with israel and iran. one of the key issues, we had professor from harvard law school is whether the united states will truly decisively back up netanyahu and israel militarily. now, with all respect to hillary clinton who is doing a fine job on this stuffy imagine, it's only the president who can make a statement like that.imagine, y the president who can make a statement like that. only the president can speak with decisive military action. and where is the president? he had a four hour day today according to the public schedule. he went to a fund-raiser someplace in virginia, he got there at 10:00, he came back home at 2:00 p.m. and that's all he had. with all this stuff going on, how is that possible?

>> well, it's disconcerting because this is the first time in 20 years that a president running for re-election didn't take time out to deal with the major foreign policy crisis the united states faces abroad. we're not only in the middle east, but look it at the island disputes between china and japan. think about the eurozone crisis involving portugal and sfan and spain and italy. think about the fact that there's riots in greece. think about the fact that you have a syrian crisis that is threatening to explode the entire middle east into further conflict. there's absolutely no real justification except for one reason. the chicago campaign operation instructed not to have the president meet with anybody on that all the headlines would be focused on ohio. >> you are an expert on the chicago operation. >> that's it right there in a nutshell. do you remember the ad in 2008

that hillary put up, it's he 3:00 in the morning, the phone is ringing in the white house, your baby is sleeping. who is going to answer that phone? it's hillary clinton is answering the phone for us right now. the president is awol. he's awol because as the ambassador just said, the operation in chicago is telling him don't get mixed up in this because if you do, you'll have to admit that on your watch, we've had the most serious breach of the u.s. intelligence since 9/11 when the benghazi consulate was attacked by al qaeda. >> the security was highly -- security is so bad that the fbi won't even even go in now to investigate the case. and i want to stay with this. what about this coverup? >> it is a coverup. >> susan rice goes out and basically lies to the american people on a number of news shows, we now know that the administration knew right away that this was a pre-planned al

qaeda terrorist operation and they lied and now they're covering up the lie. >> within 24 hours they knew it was an al qaeda operation. >> so that's why they don't want obama loose on this foreign policy. >> obama never takes -- he never says i'm to blame. it's always george bush is to blame, somebody else is to blame. he's never to blame. he is to blame. it's on his watch. >> go ahead, mark. >> the one thing that i have to say in defense of the administration here, and i know the security situation in the north africa quite well because of my own experience. it was confusing in the beginning. but it's no excuse if going out there and trotting out some alibi that it was not a terrorist attack. so i agree with that. but the one thing i want to say is the president did give a remarkably well tailored speech at the jen as s general assembl. it did an roept jappropriate jo message to the broader arab world.

>> i hear you and i agree with much of that about the speech. but this coverup is driving me crazy. this story is not going to go away. this story is not -- the republicans are hot on it now. they want investigations. it is not going to go away. >> and mitt romney should jump on this in the debate. no question about it. >> you're debt ridght. we'll see what happens. that's it for tonight's show. thanks for watching. mitt romney, guy's got his hands full. he can do it, but he has his hands full. i'm larry kudlow. be back tomorrow night.

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